Alert - UAE Excise Tax
Excise tax is paid once throughout the supply chain and not on every transaction occurring within the supply chain, as the excise tax is paid on the retail price even if the goods are supplied at a lower price throughout the supply chain.
FTA may except a person from registering for excise tax in the case where FTA is satisfied that the person importing the goods does not regularly import excise goods. The regular importation is defined as importing more than once in 6 months or 4 times in a duration of 24 months. Exempting a person from registration does not mean exempting from excise tax as the person must still pay the excise tax.
Theexcisable goods along with their excise tax rates are as below:
- Energy Drinks: 100% excise rate.
- Sweetened drinks: 50% excise rate.
- Carbonated drinks: 50% Excise rate.
- Electronic smoking devices and tools: 100% excise rate.
- Liquids used in electronic smoking devices: 100% excise rate.
- Tobacco and tobacco products: 100% excise rate.
Persons required to register for excise tax:
- Importers of excisable goods.
- Person releasing goods from a designated zone.
- Stockpiles of excisable goods.
- Warehouse keepers.
